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Frito-Lay Inc will pay $225,000 in back wages to 233 minority applicants
who were victims of discrimination for entry level positions at its Harahan,
Louisiana, plant, near New Orleans. The back wages are part of a consent decree
between Frito-Lay and the U.S. Department of Labor which was approved yesterday
(April 20, 1999) by an Administrative Law Judge.
"Discrimination remains stubbornly entrenched in too many American
workplaces," said Secretary of Labor Alexis M. Herman. "As long as some
Americans are kept from participating in the economic life of our society
because of their race, gender or other factors unrelated to their
qualifications to perform a job, this Department will act on their behalf."
As a federal subcontractor, Frito-Lay is prohibited from engaging in
discriminatory practices in the workplace. In 1995, the Office of Federal
Contract Compliance Programs undertook a compliance review of the plant and
found that the company had discriminated against African Americans in the
hiring process. Suit was filed by the Department in 1997, and the extensive
discovery revealed not only that the plant hired disproportionately more whites
than blacks as route salespersons and store representatives, but that those
blacks who were hired were disproportionately assigned to higher crimes zones
in New Orleans.
Following settlement discussions, Frito-Lay and DOL agreed to the terms
of the consent decree, which will resolve the allegations of racial
discrimination. Frito-Lay, which employed about 200 people at the plant when
the review began, agreed to offer jobs as openings occur to the minority
applicants in the affected class until 25 have been hired. All of the newly
hired who successfully complete the probationary period will also be entitled
to a full-service credit with benefits retroactive to January 1, 1995.
Additionally, Frito-Lay will train managers in equal employment opportunity,
establish affirmative action programs to hire qualified minorities, keep and
maintain certain records and submit follow-up progress reports twice a year for
two years.
"Affirmative action and non-discrimination are required for Frito-Lay
and all federal contractors," said Bernard E. Anderson, Assistant Secretary for
Employment Standards, of which OFCCP is a part. "I urge all businesses to
evaluate their hiring and recruitment practices to ensure that those who are
hired are chosen based on their abilities, not excluded based on their race. I
recommend that they do so on their own before the Labor Department seeks
redress."
OFCCP is part of the Labor Department's Employment Standards
Administration. It enforces Executive Order 11246, the Rehabilitation Act of
1973, and the Vietnam Veterans' Readjustment Act of 1974, as amended. This
group of laws prohibit federal contractors and subcontractors from
discrimination in employment based on race, gender, religion, national origin,
disability or veteran status.
Archived News Release--Caution:
information may be out of date.
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